360 divisional and 286 district schemes cancelled; project costs rise 4050% amid inflation
RAWALPINDI:
The District Development Plan (DDP) for Rawalpindi district for the new financial year 2026-27 has yet to be finalised, despite the second month of the fiscal year nearing its end, amid an acute financial crisis.
The plan is still at the finalisation stage and has undergone several changes because of severe financial constraints.
All major mega projects in the district have been dropped, while 360 development schemes in Rawalpindi Division and 286 schemes in Rawalpindi district have been cancelled. All development schemes of the Rawalpindi Municipal Corporation (RMC) and the District Council have also been cancelled.
The financial crisis has also led to the cancellation of several major projects, including the Murree Road Signal-Free Corridor, expansion and construction of service lanes from Liaquat Bagh to Chandni Chowk, underpasses at Chandni Chowk, Murree Road-Rawall Road and Murree Chowk, an underpass linking Double Road with Ninth Avenue, the Rs800 million Leh Expressway, and a multi-storey parking plaza at Liaquat Bagh.
The cancellation and deferment of these mega projects and development schemes is expected to substantially increase their estimated costs.
The provincial government has imposed a ban, until further orders, on all new development projects and the release of funds across Punjab owing to the financial crisis.
The Rawalpindi Development Authority (RDA) had proposed mega projects worth Rs8 billion for the financial year 2026-27, including the Murree Road Signal-Free Corridor, expansion and service lanes from Liaquat Bagh to Chandni Chowk, underpasses at Chandni Chowk, Murree Road-Rawall Road and Murree Chowk, an underpass connecting Double Road with Ninth Avenue, the Rs800m Leh Expressway and a multi-storey parking plaza at Liaquat Bagh, estimated at Rs2.533b.
However, owing to the severe financial crisis and stringent requirements for PC-I approval and clearance, all these projects have been excluded from the Annual Development Programme (ADP) and the DDP.
The estimated costs of the projects have also risen by 40 to 50% due to sharp increases in the prices of construction materials, including steel, cement, iron bars, sand and gravel, as well as higher labour costs. The steep rise in petroleum prices has also pushed up transportation costs to record levels.
As a result, if these projects are to be included in the ADP and DDP for the financial year 2027-28, new feasibility studies and PC-Is will have to be prepared at a cost of millions of rupees.
